Obtaining a personal loan in India is much easier than it was a few decades back. Today, with an instant loan app, you can apply for a quick loan from any where and at anytime.You just have to meet a handful of eligibility requirements, submit the requested documents in the correct format and the loan will be disbursed into your account within hours. But if you want to avail a loan with better loan terms then here are 5 expert tips that you must know.
Several factors influence your loan eligibility in the Indian lending market. Some of the most crucial factors include, your age, credit score, income capability, employment status, current debts and monthly obligations. Thankfully, with expert tips you can work around these factors to avail a loan at your terms.
Read on to discovert he best tips to get a personal loan in India as per your terms.
Best Tips to Get a Personal Loan In India
A quick loan is one of the most popular solutions for addressing a financial emergency. Personal loans may come in handy for various planned and planned expenses. Since personal loans don’t require collateral, lenders require you to meet a few eligibility requirements.This helps them analyse the risk associated with your loan and make right lending decisions.
Check out these five suggestions to improve your chances of acquiring a personal loan.
1. Keep track of your credit history and CIBIL score.
Before applying for a quick loan, you must check your credit score. Your credit score is an indicator of your creditworthiness. This score is assigned by a credit bureau based on your payment history and credit usage. Your credit score is directly proportional to how effectively you have repaid your previuos debts.
Ideally, you should have a high credit score to avail a loan with best features.Though you can avail a loan even with poor credit score through an instant loan app, but having good credit score puts you in a better position. You can negotiate better interest rates, get concession on loan fees and avail a higher loan amount.
2. Confirm your eligibility before applying
Different lenders have different eligibility requirements for approving your loan application. You can check the eligibility requirements by simply visiting the lender’s website or downloading an instant loan app.
Most lenders consider parameters like your age, monthly income, your income stability, credit score, and your employer. You must make sure that you meet these requirements to avail a loan. Failing to fulfil the lender’s requirements will lead to loan rejection.
3. Work with a reputed employer or in a government job
Lenders prefer employees working in a reputed MNC or in a government job. This is because of the high job stability and regularity in payment, that assures the lender about regular repayment of the loan. Lenders offer better loan terms like reduced interest rates, pre-approved loans and quick processings for such employees.
Working in a start-up can make it difficult for you to get the loan. Also, working as an independent professional can make it difficult for you to secure the loan. Thus, it is important to think about these aspects while looking for a job.
4. Calculate your monthly EMI burden
Beofre applying for a quick loan, you must calculate your monthly EMI burden. You can use an online loan calculator to estimate your loan EMI burden. You can adjust the loan amount and loan tenure and find a loan EMI that fit into your budget. It is very crucial to estimate your loan EMI before availing the loan to ensure that you can repay the loan without straining your monthly budget.
5. Read the terms and conditions carefully
This is a very common mistake that most people make. They just tick on the checkbox without reading the terms and conditions in detail. However, when it comes to a quick loan, you must read the fine print. It contains details like processing fees on the loan, pre-closure fees, loan transfer fees and more.
Availing a loan through an instant loan app offers better transperancy. They also provide 24 by 7 customer service to assist you in understanding the different terms of the loan. It is highly recommended to study the financial terms, develop a strong understanding and apply for a personal loan only when it is feasible for you.
6. Have the necessary documents available for upload
A personal loan can come in handy during an emergency. But in order to avail the loan easily during crisis, you must keep the digital copy of your documents ready. The most common documentation requirements include, your identification proof, address proof, bank statements, photo and salary slips.
Make sure to keep these documents in your phone to apply for a quick loan trough an instant loan app at the time of need. You can upload these documents on a cloud storage like google drive or icloud for easy access.
The Bottom Line
Personal loans come in handy in situations when money is tight. These do not need collateral and can be obtained with little paperwork. Getting a personal loan approved seems easy, given the extensive options of quick loan apps by numerous banks and NBFCs.
However, you must chech the eligibility requirements, terms, and restrictions that financial institutions need you to fulfil.